Malaysia’s rental market is finally showing signs of slowing down after more than a year of rising prices!
According to a new report by real estate group Juwai IQI, average home rents either stayed the same or dropped slightly in the first quarter of 2025.
The report shows that the average rent across Malaysia fell from RM2,052 in Q4 2024 to RM2,020 in Q1 2025.
This is the first time in over a year that rent prices didn’t go up, which is welcome news for many Malaysians, especially those living in big cities like Kuala Lumpur.
Kuala Lumpur, which had some of the biggest rent increases last year, is now seeing prices level off.
This means less pressure on renters who have been struggling to keep up with rising living costs.
What’s Behind the Change?
Juwai IQI Group CEO, Kashif Ansari, explained the trend clearly:
“What we’re seeing is a healthy cooling-off period after an aggressive rental surge in late 2024. Economic indicators remain strong, but the market is adjusting as supply and demand find new balance.”
He also added,
“Stable rental prices bring predictability. That’s good not just for tenants, but also for developers and property investors looking to plan long-term.”
Juwai IQI Group CEO, Kashif Ansari
Kashif mentioned that while the general rental market is slowing, luxury properties are still in demand, especially in areas like the Klang Valley.
He said, “Economic indicators remain strong, but the market is adjusting… while rents have slowed down, demand in the luxury and high-end rental market remains resilient.”
Why This Matters
This slowdown in rent growth could help ease the cost of living for many people.
With prices no longer climbing as fast, renters may find it easier to plan their finances and manage other expenses.
Looking Ahead
Juwai IQI believes this trend could continue through the year, depending on inflation and interest rates.
If the market stays balanced, renters and landlords alike can expect a more stable year ahead.
Juwai IQI was featured in The Malaysian Reserve.
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